India and Vietnam are the most promising markets for long-term investment thanks to their fast-growing economies that have helped them cope with global challenges and uncertainties, says Krungthai Asset Management (KTAM).
Although the global economy remains volatile as a result of the tense political situation, KTAM chief executive Chavinda Hanratanakool said there were signs that inflation had begun to slow down after several central banks took steps to ease inflationary pressures.
She noted that KTAM has started to see signs of economic recovery in countries with high-growth potential. Among those are India and Vietnam, which have become increasingly attractive for investment.
The Indian economy, according to Ms Chavinda, has benefited from the Central Bank of India's measures to shore up asset prices. Besides, consumption in the country has huge growth potential given a population of 1.38 billion, of which 65% is at working age.
Additionally, the Indian government has focused on infrastructure development, including digital infrastructure, as well as privatisation of various government agencies. Those measures will attract more investment inflows to further boost economic expansion, Ms Chavinda said.
Vietnam, meanwhile, has been an attractive investment destination due to its high economic growth and comparatively low inflation. And despite the local stock market's recent sharp falls following the government's aggressive crackdown on investors and businesspeople who have committed crimes, Ms Chavinda said such conditions presented a new investment opportunity.
For investments in India, KTAM recommends the KTAM India Equity Fund (KT-INDIA-A), which focuses on investments in the Invesco India Equity Fund -- Class A (a master fund), targeting long-term capital growth.
The master fund has focused its investments on stocks or instruments of Indian companies, representing about 70% of the fund's total asset value.
For Vietnam, the KTAM Vietnam Equity Fund (KT-VIETNAM-A) is an active investment aimed at generating superior market returns. Through equity investment, the fund focuses on stocks that benefit from economic growth and listed companies on both domestic and foreign markets.
The fund has an investment process that combines both top-down and bottom-up styles, while it has chosen stocks that have good fundamentals and long-term stability.
Investors who are looking to invest with tax benefits can opt for the KTAM Vietnam Equity Fund (Saving Type), also known as KT-VIETNAM-SSF, Ms Chavinda said.
